Mclaren Investment Property

2 Bedroom Apt. Paphos Riviera – Paphos, Cyprus
Price = £112,700CYP = £131,000GBP (0.86/£1)

Deposit 15% = £19,650 – Due on Signing of Contracts
Completion 5% = £6,550 – Due June 2009
Total to pay = £26,200GBP

Rental Income

Average rental from all 3 seasons = £425GBP/week

Mortgage Information

Total Loan Required - £104,800GBP
Monthly Repayments = £104.8 x £3.6 = £377/month
Total Repayments over 5 years = £377 x 36 months = £13,585GBP

Costs Per Annum

Mortgage Repayments £377 x 12months = £4,525
Homes & Contents Insurance = £160
Community/Maintenance Fees = £500
Water Rates = £60
Council Tax = £80 (depending on area)
Electricity = £175

Total Costs per Annum = £5,500 + JMS fees of 30% per average rental week if you choose to use them.

Total Costs to Investor per Annum

This graph illustrates that for the investor to break even on ALL costs of the property, it will need to be rented out for 18 weeks of the year.

During a rental period of 15 weeks, the investor will make £6,375 per annum. This means to cover everything the investor will only need to pay £86/month to gain large profits at the end of the investment model.

Profit

If the client sells the property around 5 years:

Estimated Value = £263,500
                                           - Deposits = £26,200
                                           - Bank Loan = £104,800
                                           - Mortgage Repayments = £13,585
                                           - Other Costs = £8,665
                                           - Lawyer Fees = £1,500
                                           - Stamp Duty = £175
                                           - Air Con & Furniture = £8,000
                                           - Transfer of Title Deeds = £6,795
                                           + Rental £19,125 (at 15weeks)
                                              Gross Profit = £112,905

Capital Gains to pay = £21,900 in Cyprus, with 2 names on contract.

Net Profit = £91,005 in 5 years from £26,200
R.O.I = 347%

• Capital Growth figure used is: Cyprus – 15% per annum
• Mortgage rate used in this model: Cyprus - £3.6/£1000. Provided by a specialist independent broker.
• Mortgage is over 30 years (subject to age and financial status)
• Mortgage is only interest only for first 5 years. Investors will sell before this time period ends.
• Currency conversion correct at time of going to print.
• Build time to completion is usually 2 years.
• Please note actual amount of rental income could be more or less than this estimated figure.
• If gains are brought back into the UK, the investor will be taxed on the tax free gains made in Cyprus.
• Tax paid on the gains made through the sale of the property can be up to 40% depending on income.
• The above calculations should be viewed as guidelines only.